Poland: Developers weigh in on new law requiring price disclosure for flats under construction
Tomasz Kaleta, managing director of sales and marketing at Develia
We are not opposed to the idea of transparency in apartment prices; greater consumer awareness of this issue may increase market efficiency. However, we have doubts about the pace of introducing new regulations and the lack of broader consultation with the industry. We are currently preparing to implement the new requirements.
When analysing the issue of price transparency, it is worth remembering that the price of a specific flat within a single development depends on several factors, such as its size, floor, orientation and the size of the balcony. As a result, the price per square metre of a flat can vary by as much as PLN 6,000 within the same development.
Mateusz Bromboszcz, Vice-President of the Management Board of Atal
Atal is one of the few property developers that have been openly presenting their apartment prices and communicating them transparently for many years. On our website, customers can find prices for individual flats and their turnkey finishes, as well as additional spaces such as storage rooms, parking spaces, etc. We understand that this is what buyers expect when making an important life decision based on numerous offers, which can be time-consuming to review.
However, price is not everything. When comparing offers, other important parameters should be taken into account, such as the quality and standard of the estate, the class of finish of the common areas, and for the flats themselves, e.g. their location in relation to the cardinal directions, the floor on which they are located, or the size of the balcony or garden.
The introduction of an obligation to publish offer prices on websites will not make flats cheaper. Although it will make it slightly easier for customers to obtain information, this change will be neutral for the market. It is not the way in which an offer is presented that determines the offer price of a flat, but the costs of its construction, including the price of land and other important components of development projects.
When it comes to reporting and sanctioning companies, we are in favour of common sense and not duplicating regulations that already impose certain information obligations. Furthermore, it is important that all provisions of the act are unambiguous in their interpretation and do not raise doubts among any market participants.
Mariusz Gajżewski, Head of Sales, Marketing and Communication, BPI Real Estate Poland
Price transparency increases consumer confidence and reduces unfair practices by market participants that mislead customers. The introduction of sanctions for providing incomplete information to buyers may significantly affect market practices, as developers will be forced to present their offers more accurately. This may also reduce unfair competition.
On the other hand, care should be taken to ensure that the regulations are precise and unambiguous in order to avoid excessive bureaucracy and uncertainty of interpretation on the part of developers. In the broader perspective, I believe that the new regulations may have a positive impact on the professionalisation of the real estate market and increase transparency.
Katarzyna Mirota, Head of Sales & Marketing, Matexi Polska
The disclosure of apartment prices is a step towards a transparent real estate market that supports customers in making informed and thoughtful purchasing decisions. It gives them easier access to information about current offers, the ability to track price trends and compare available options. Price transparency eliminates uncertainty, reduces the time needed to analyse the market and allows for faster decision-making. For developers, this means a more efficient sales process. They are contacted by customers who have already familiarised themselves with the terms and conditions of the offer and have given their preliminary approval. This, in turn, speeds up and facilitates the finalisation of transactions.
Since the beginning of our operations in Poland, we have been guided by the principle of full transparency towards our customers. The prices of apartments in our investments are publicly available, both on our websites and in information materials. We believe that this is the foundation of lasting, positive relationships with buyers and a standard that should become the norm throughout the development industry.
Marcin Malka, President of the Management Board of Real Management S.A.
I think that the new regulations will have a greater impact on the market for popular flats. The luxury property market is more individualised, so the change in regulations should not significantly affect its functioning. On the other hand, our clients value discretion, so we are not enthusiastic about such solutions in the premium segment. In the case of apartments in the popular segment, these regulations may lead to greater market transparency, which will result in even greater competition.
Wojciech Wilhelm Zhang-Czabanowski, President of the Management Board of Waryński S.A. Holding Group
The proposed amendment to the Development Act, which aims to oblige development companies to publish full prices of flats in the general section of the information prospectus on their websites, is a step towards increasing the transparency of the real estate market. Currently, according to market analyses, prices are not published in as many as 60-80% of investments, which makes it difficult for consumers to compare offers and make informed purchasing decisions.
Full price transparency may translate into greater customer confidence, increased competition among developers and more professional relations with buyers. Potential customers will gain a real tool for preliminary assessment of offers without having to contact the sales office each time.
From an operational perspective, the amendment may change the structure of enquiries directed to developers. Although the overall number of enquiries may decrease slightly, enquiries asking only about the price, i.e. those from people who are not yet decided on a specific investment, will be naturally eliminated from the market. In return, a larger percentage of contacts will come from customers who are cost-conscious and genuinely interested in other aspects of the offer, such as location, apartment layout, standard of finish and availability of amenities. For sales departments, this means greater efficiency in working with leads and better tailoring of communication to customer needs.
The Waryński Group supports the direction of changes aimed at increasing the transparency of the housing market. We are open to further industry dialogue that will allow us to develop solutions that are beneficial to both consumers and professional market participants.
Andrzej Gutowski, Sales Director, Ronson Development
We welcome the proposed amendment to the act. We have supported this initiative from the outset and believe that greater transparency in the presentation of property prices is a step in the right direction, both for customers and for the market as a whole.
The proposed changes should help to tidy up the market and increase its credibility. Today, customers often have to wait a long time for offers and details of costs. The new regulations will change this, giving them easier and faster access to key information. From our perspective, this is a very positive change, which in the long term will have a positive effect, increase trust in developers and, at the same time, fair competition will stimulate further market development.
Joanna Chojecka, Sales and Marketing Director for Warsaw and Wrocław at Grupa Robyg
We are prepared for the new requirements under the amendment to the Act, which imposes an obligation to disclose the prices of all flats sold on the website. We have been operating in a transparent and honest manner for years. For companies such as Robyg, which have been focusing on the quality of relations and transparency of the sales process for years, the new regulations do not mean a revolution. We already publish detailed information about our flats and clearly communicate additional costs, from parking spaces to maintenance fees. Our goal is not only to sell, but to build lasting trust and a good customer experience.
Damian Tomasik, President of the Management Board of Alter Investment
The law, which requires developers to disclose all apartment prices on their websites and in their prospectuses, is a step towards greater market transparency. At Alter Investment, we fully support measures aimed at standardising and organising the information provided to customers. Consistency of communication and transparency of rules are key to building trust in the entire industry.
This is also in line with the position of the Polish Association of Developers, of which we are a member, which emphasises that the primary market should operate according to clear and understandable rules, eliminating misunderstandings between developers and customers. The introduction of full price transparency and the requirement to provide precise information on additional costs may contribute to increasing consumer awareness and help them make informed purchasing decisions.
At the same time, we would like to point out that it will be crucial to clarify the regulations and standardise the presentation of prices and costs in order to ensure the comparability of offers and avoid introducing unnecessary administrative barriers for developers. If the new regulations are introduced in a well-thought-out manner, the market can only benefit, both in terms of transparency and professional customer service.
Source: dompress.pl
